Align Technology (ALGN) FY2025 10-K Annual Report
Align Technology (ALGN) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 27, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Align Technology FY2025 10-K Analysis
Business Overview
- • Global med-device co: design/manufacture/market Invisalign clear aligners (~80% revenue), iTero scanners, and exocad CAD/CAM software via integrated Align Digital Platform
- • 2025 new launches: iTero Lumina Pro with NIRI technology (March), Align X-ray Insights AI-based caries detection in EU/UK (March), Invisalign MAOB for Class II teen patients (December)
- • Direct fabrication via Cubicure (acquired Jan 2024) scaling toward millions of 3D-printed devices/day; retainers and pre-fab attachments pilot releases planned 2026
- • Headcount ~20,290 as of Dec 31, 2025 — down 3.1% YoY and 6.1% vs 2023, signaling ongoing workforce contraction despite product expansion
- • Invisalign holds only ~10% share of ~22M annual global orthodontic case starts — massive untapped market framing core growth narrative
Management Discussion & Analysis
- • Revenue $4,035M, up 0.9% YoY ($+$36M); Clear Aligner +0.5% to $3,245M, Systems & Services +2.7% to $790M
- • Gross margin 67.2% vs 70.0%; operating margin 13.5% vs 15.2%; Clear Aligner margin 31.9% vs 35.4%; Systems & Services margin 38.8% vs 35.0%
- • Best segment: Systems & Services op margin 38.8% vs 35.0%; worst: Clear Aligner dragged by $77M accelerated depreciation and ASP decline 3.9% ($1,245 vs $1,295)
- • Operating cash flow $593M vs $738M YoY; capex $102M; buybacks $466M; $831M remaining under repurchase program; no dividends
- • Key risks: tariff volatility, macro uncertainty dampening discretionary spending, orthodontic starts down four consecutive years; FY2026 capex guided $125–$150M
Risk Factors
- • Section 232 investigation by U.S. Dept of Commerce into PPE/medical device imports directly threatens Align's Mexico-manufactured clear aligners shipped to U.S.
- • iTero HQ in Israel near Hamas conflict zone; Mexico manufacturing exposed to drug cartel/gang activity disrupting production and logistics
- • Heavy dependence on sole-source suppliers for specialized resin, rapid prototyping machines, and iTero optics components with no quick replacement path
- • Competitors integrating AI/ML into orthodontic workflows risk commoditizing Invisalign; DTC aligner companies bypassing doctor channel further erode pricing power
- • Revenue concentrated in Invisalign System as primary revenue driver; restructuring plans executed three consecutive fiscal years signal persistent operational instability
Align Technology FY2025 Key Financial MetricsXBRL
Revenue
$4.0B
▲ +0.9% YoY
Net Income
$410M
▼ -2.6% YoY
Gross Margin
67.2%
▼ -281bp YoY
Operating Margin
13.5%
▼ -167bp YoY
Net Margin
10.2%
▼ -37bp YoY
ROE
10.1%
▼ -80bp YoY
Total Assets
$6.2B
▲ +0.3% YoY
EPS (Diluted)
$5.65
▲ +0.5% YoY
Operating Cash Flow
$593M
▼ -19.6% YoY
Source: XBRL data from Align Technology FY2025 10-K filing on SEC EDGAR. All figures in USD.
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